In April, we wrote an article about Buffett, Berkshire and OXY, calling it the Sounds of Inevitability.
OXY, Buffett, and the Sounds of Inevitability
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Well that’s interesting . . . That’s what I’m thinking as I peruse OXY’s Q4 results. OXY effectively generated operating cash flow of ~$11.7B, spent about $6.2B on capex, and hence ended with $5.5B of free cash flow. It’s about what we’d expect given OXY realized worldwide oil price of $76.85/barrel for the year.
It was a run-down of Q1 results coupled with an analysis of the CrownRock acquisition. As the months have come and gone though, Berkshire’s final game plan with OXY is becoming increasingly clearer.